By Katherine Hamilton
Private equity firm Welsh, Carson, Anderson, and Stowe settled allegations it suppressed competition and drove up prices for anesthesiology services in Texas.
The Federal Trade Commission said Friday that Welsh Carson is required to limit its involvement with U.S. Anesthesia Partners, an affiliate through which the firm was allegedly engaging in anti-competitive practices. The settlement mandates Welsh Carson to freeze its investment in USAP and to reduce its board representation to a single non-chair seat.
Welsh Carson also must get prior approval from the FTC for future investments in anesthesia and for certain acquisitions by any majority-owned Welsh Carson anesthesia group. It must also give 30-days prior notice for certain transactions involving other hospital-based physician practices.
In September 2023, a federal court complaint alleged that Welsh Carson and its affiliate USAP were systematically buying large anesthesia practices in Texas to create a single dominant provider in the market.
In May 2024, the district court dismissed the claim against Welsh Carson because it found the FTC was not alleging the company was currently violating the law. The FTC's antitrust case against USAP is still ongoing in federal court.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
01-17-25 1310ET
